news flash·2025-05-16 00:41Core Viewpoint - The chemical industry in China is experiencing internal performance divergence in Q1 2025, with the petroleum and basic chemical sectors showing contrasting revenue and profit trends [1] Group 1: Revenue and Profit Performance - The petroleum chemical sector achieved revenue of 1,015.1 billion yuan, reflecting a year-on-year decline of 7.1% [1] - The basic chemical sector reported revenue of 607.0 billion yuan, with a year-on-year increase of 6.4% [1] - The net profit attributable to shareholders for the petroleum chemical sector was 17.0 billion yuan, down 23.5% year-on-year [1] - The basic chemical sector's net profit attributable to shareholders was 37.1 billion yuan, showing a year-on-year growth of 4.7% [1] Group 2: Factors Influencing Performance - The decline in oil prices is expected to be the main factor dragging down the performance of the petroleum chemical sector [1] - The growth in the basic chemical sector's performance may be attributed to industry scale expansion and supply disruptions leading to price increases for certain products [1] Group 3: Industry Outlook - The sales gross margins for the petroleum and basic chemical sectors were 14.3% and 17.9%, respectively, both at historical low levels [1] - The low prosperity in the chemical industry is anticipated to accelerate the elimination of backward production capacity and enhance industry self-discipline [1] - With the continued implementation of domestic demand stimulation policies, terminal demand momentum is expected to gradually stabilize, awaiting a bottoming out of the industry prosperity cycle [1]